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  1. Fill in the blanks with the articles if it is necessary:

Johnson and Sons, … British company, were interested in … machine tools of Ukrexport. Mr Walker, … manager of … company, arrived in Kyiv to have … talks with … engineers of Ukrexport. Before he came to our country he had contacted Ukrexport and … secretary of … company arranged his visit to … Ministry of … Foreign Trade.

On … 5th of March Mr Walker and … representatives of … Sellers met to discuss … business.

Ukrexport was ready to offer Mr Walker 20 machine-tools of … latest model at price of $... per unit. But Mr Walker could not accept … price. He found it higher than … prices on … world market for this type of … machine tools.

Unit V. Wholesaling and Retailing

  1. Remember the terms:

  • wholesaling гуртова торгівля

  • retailing роздрібна торгівля

  • middleman посередник

  • merchant wholesaler гуртовий скупник

  • to take title to the goods придбати товар як власність

  • ultimate consumer кінцевий споживач

  • mail-order house посилочна фірма

  • vending machine operator оператор торгівельних автоматичних

машин, котрі продають дрібні товари

  • discount house магазини із зниженими цінами

  • extending credit довгостроковий кредит

  • outlet ринок збуту, торгівельна точка

  1. Read and translate the text:

Wholesaling is a part of marketing system. It provides channels of distribution, direct and indirect, which help to bring goods to the market. Indirect channels are generally used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries.

Two-thirds of the wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both. They don’t take title to the goods they deal in. These agents don’t earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5,000 items in groceries alone, a retail druggist can have more than 6,000 items. As a wholesaler handles a large assortment of items from numerous manufactures he reduces the problem of both manufacturer and retailer. The store-keeper doesn’t have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.

The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise, for example food hardware (продукти харчування), etc.

The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees goods and services he sells. Third, the retailer helps to promote the product through displays, advertising or sales. Forth, the retailer can finance the customer by extending credit. Also, the retailer stores the goods in his outlet by having goods available.